The Polish state looks to be bailing out the troubled construction company Polimex via a PLN 160m loan through its industrial development agency ARP, according to Dziennik Gazeta Prawna. It’s part of the worsening hangover from the road building spree Poland embarked upon in preparation for the Euro 2012 football championships.
In the mad scramble to land government orders, construction companies bid below costs, and the ensuing carnage threatens to spread throughout the industry. Polimex will be selling off its Energomontaz and Sefako units, a deal it hopes will bring it PLN 200m. Its own shares will be pledged as collateral as part of the loan from the ARP, but its debts allegedly run to more than PLN 2.5bn.
